The North American uninterruptible power supply (UPS) market saw a decline due to the COVID-19 pandemic, but a new report indicates it is expected to show future growth.
According to Graphical Research in an April 2022 report, the North American UPS market surpassed $4 billion in 2020 and is expected to show a compound annual growth rate of 5% from 2021-2027.
A UPS device provides battery backup during power outages. Because traditional UPS doesn’t provide scalability for increasing or decreasing power, modular UPS technology provides flexible power capacity by adding or removing modules.
An October 2020 report from research firm MarketsandMarkets estimated the global modular UPS market size would rise from $3.7 billion to $6 billion by 2025 at a CAGR of 10% over the same time. Factors driving this growth are the increasing demands for net-zero downtime, scalable and redundant power systems, hyperscale power systems, cloud use and co-location facilities from sectors including healthcare and manufacturing.
In particular, North America’s growing healthcare industry is supporting this market, as healthcare applications rely on UPS to provide backup power to critical-care equipment during power interruptions.
According to Graphical Research, as more hyperscale data centers are built, there will be more demand for UPS that helps minimize equipment downtime caused by power surges. This type of data center requires a large amount of power for “peak data-intensive processes,” which drives up UPS demand.
The COVID-19 pandemic significantly affected the market, because many industrial plants had to temporarily close due to supply chain shortages and limited availability of the electrical components used to make UPS. Manufacturing resumed activity in the second part of 2020. As more people participated in online commerce, learning, banking and video streaming, data traffic increased in 2020 and 2021, which encouraged companies to offer data centers with high-quality power-management solutions.
In addition, because many of those employed at manufacturing facilities also stayed worked from home during the COVID-19 pandemic, many plants were running at a lower capacity, so output was reduced. This, in turn, affected the supply chain.
MarketsandMarkets predicts North America will have the largest UPS market size between 2020 and 2025 due to the many co-location facilities and data centers. Canada has the fastest-growing market in this region.
About The Author
Holly Sauer
Senior EditorHolly Sauer has worked for ELECTRICAL CONTRACTOR magazine since 2019 and is the senior editor. She went to Washington & Jefferson College and studied English and art history. At Electrical Contractor magazine, she creates the newsletters and the new and featured products sections. She also edits articles for the three publications and occasionally writes on tools and industry news. She is fueled by the desire to read every book ever written. And coffee. Reach her on LinkedIn or at [email protected].
